Gold prices rise for second day in row, hit Rs 50,000 per 10g
The global spot gold rates jumped 1.3% to $1,865.81 an ounce, the highest in nine years.
Continuing the upward trend, gold prices in India inched higher on Wednesday as global prices continue to rise.
According to the latest updates, the active gold contract on MCX hit a record high of Rs 50,020 per 10 gram in the morning trade. This is reflective of global insecurity that hikes the rate of precious metals, as the global spot gold rates jumped 1.3% to $1,865.81 an ounce, the highest in nine years.
The price of silver has shown an increasing trend as well, as silver rates spiked on this day to reach Rs 61,130 per kg. This is a 6.6% jump on the September silver futures on MCX.
There is a rise in demand for precious metals as the markets are uncertain over the ensuing coronavirus disease (COVID-19) pandemic outbreak and the US-China trade war.
The gold prices have seen an upward trend after European Union leaders agreed on a stimulus package to revive the economy, while US Congress will discuss a new aid package this week.
"Gold prices traded higher on another stimulus hope from the US and European Union (EU)," HDFC Securities Senior Analyst (Commodities) Tapan Patel said earlier.